Early this morning, the Senate gave final approval to a two-year budget deal, stitched together with gimmicks that would make Valeant’s accountants blush. The deal gives the President an extra $80 billion to spend, delays any budget and tax showdown until after the election, and allows ex-speaker John Boehner to get the hell out of Dodge. The business lobby largely supported the deal; tea partiers and GOP presidential candidates opposed it.
Coins2Day’s Tory Newmyer breaks down the business winners and losers as follows:
Winners:
Big business generally. AT&T CEO Randall Stephenson said eliminating the threat of another shutdown will boost business confidence.
Big business specifically. The agreement junks a provision of Obamacare requiring big businesses to automatically enroll new hires in health plans.
Defense contractors. Half the $80 billion would go to defense spending.
Losers:
Generic drug makers: The deal cuts subsidies for generics by $1.3 billion over ten years.
Hedge funds: The deal streamlines the process for audits, raising $11 billion over ten years.
Companies with defined benefit pensions: The deal increases premiums to the Pension Benefit Guaranty Corporation.
The deal cleared the way for Paul Ryan to be elected speaker Thursday. Good luck to him.
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